Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 21, Problem 7SPPA
To determine
Component of
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Question 22
Table 2.1 GDP and its components, 2012
Source: Bureau of Economic Analysis. Table 1.1.5,
Note:Numbers may not add up to the totals due to rounding.
Personal consumption
expenditure (C)
Consumer durables
Nondurable goods
Services
Investment (1)
Fixed investment
Inventory investment
Residential investment
Government purchases (G)
Federal
State and local
Net exports (NX)
Exports
Minus imports
Total = GDP (Y)
www.bea.gownational/nipaweb/SelectTable.asp?Selected=Y
Billions of Dollars
11,286
1,231
2,595
7,459
2,500
2,018
13
469
3,151
1,275
1,875
-516
2,214
2,730
16,420
Percent of GDP
68.7
7.5
15.8
45.4
15.2
12.3
0.14
2.9
19.2
7.8
11.4
-3.1
13.5
16.6
100.0
Assuming that the GDP breakdown shown in Table 2.1 is typical of a given year in the U.S. we can say that
government purchases is the largest main component of GDP
consumption of durable goods is twice that of nondurables
we spend twice as much on goods consumption as we do on services
all of the above
none of the above
The table below shows the values for several different components of GDP.
Composition of Gross Domestic Product
Component
LA
Consumer durables
Consumer nondurables
Services
Business fixed investment
Residential fixed investment
Inventories
Exports
Imports
Government purchases
What is the value of total gross investment?
Instructions: Round your answer to 1 decimal place.
Value
(billions of
dollars)
$1,292.7
2,615.4
8,038.8
2,805.0
558.5
80.4
billion
2,320.5
2,863.1
3,093.6
Calculate the following using information from the table below:
i.
GDP at Market Price
ii.
GNI at market price
iii.
Net National Income
iv.
National Disposable Income
Purchase of mask by households
Clothing
Purchase of food to be used by households
Investment in housing
Change in inventory
Building of new public hospital
Import
Export
Tax
Subsidies
Salaries to workers abroad
Compensation from workers abroad
Depreciation
Net Current transfer
12,000
45,500
20,000
100,000
10,000
2,000,000
5,000
75,000
4,000
1,000
7,500
3,500
300
1,500
Chapter 21 Solutions
Foundations of Economics (8th Edition)
Ch. 21.A - Prob. 1SPPCh. 21.A - Prob. 2SPPCh. 21.A - Prob. 3SPPCh. 21.A - Prob. 4SPPCh. 21.A - Prob. 5SPPCh. 21.A - Prob. 6SPPCh. 21.A - Prob. 7SPPCh. 21.A - Prob. 1IAPCh. 21.A - Prob. 2IAPCh. 21.A - Prob. 3IAP
Ch. 21.A - Prob. 4IAPCh. 21.A - Prob. 5IAPCh. 21.A - Prob. 6IAPCh. 21.A - Prob. 7IAPCh. 21 - Prob. 1SPPACh. 21 - Prob. 2SPPACh. 21 - Prob. 3SPPACh. 21 - Prob. 4SPPACh. 21 - Prob. 5SPPACh. 21 - Prob. 6SPPACh. 21 - Prob. 7SPPACh. 21 - Prob. 8SPPACh. 21 - Prob. 9SPPACh. 21 - Prob. 10SPPACh. 21 - Prob. 1IAPACh. 21 - Prob. 2IAPACh. 21 - Prob. 3IAPACh. 21 - Prob. 4IAPACh. 21 - Prob. 5IAPACh. 21 - Prob. 6IAPACh. 21 - Prob. 7IAPACh. 21 - Prob. 8IAPACh. 21 - Prob. 9IAPACh. 21 - Prob. 10IAPACh. 21 - Prob. 11IAPACh. 21 - Prob. 12IAPACh. 21 - Prob. 1MCQCh. 21 - Prob. 2MCQCh. 21 - Prob. 3MCQCh. 21 - Prob. 4MCQCh. 21 - Prob. 5MCQCh. 21 - Prob. 6MCQCh. 21 - Prob. 7MCQ
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Similar questions
- Country A has export sales of 20 billion, government purchases of 1,000 billion, business investment is 50 billion, imports are 40 billion, and consumption spending is 2,000 billion. What is the dollar value of GDP?arrow_forwardList some of the reasons why economists should not consider GDP an effective measure of the standard of living in a county.arrow_forwardLast year, a small nation with abundant forests cut down 200 worth of trees. It then turned 100 worth of trees into 150 worth of lumber. It used 100 worth of that lumber to produce $250 worth of bookshelves. Assuming the country produces no other outputs, and there are no other inputs used in producing trees, lumber, and bookshelves, what is this nations GDP? In other words, what is the value of the final goods the nation produced including trees, lumber and bookshelves?arrow_forward
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